As of year 1. FGM Corp pre-tax cash flow from operations = $750k. Tax rate = 40%. New fixed asset investment = $250k. Depreciation = $125k. Expected growth = 7%. WACC = 13%. Firm has no debt and NWC remains the same. What is FGM's total equity value?

Answer rating: 100% (QA)

To calculate FGMs total equity value we need to use the free cash flow to equity FCFE approac... View the full answer